PLANET HOLLYWOOD RESORT/CASINO IS LOOKING FORWARD TO A BRIGHT FUTURE

Implications: Can Planet Hollywood just rely on two towers of Time Share and condo sales to bolster their bottom line. The investment will be substantial and the results must make this move justifiable. The introduction of time share into their portfolio should certainly make a large difference in cash flow when the time share is sold out....

Analysis: The presence of Planet Hollywood Resorts on the Las Vegas Strip should be an enormous factor in keeping this property alive. The previous owners, The Aladdin Hotel was a complete disaster. They had no clue, when building this property, what it takes to make a strip hotel and casino work. It was a hap-hazzard effort with no thought of continuity. It was almost impossible for the walk in trade to walk in. The front of the property that faced the strip had no visible entrance. When guests wanted to check into the hotel, the lobby was on a lower floor then the casino and public areas. They had gaming on two different floors, thus making it an effort for the higher end players to find the High Roller room. This was just the tip of the iceberg - there was so much wrong that the best of marketing could not keep the Aladdin from going under.

When Robert Earl, head honcho of Planet Hollywood, decided to try his hand at this property there were some people in the know that had doubts. He has made a terrific effort to change the property around and bring to an updated status. He has enlisted the help of many of Hollywood's most famous to help promote his new venture - it's working. He has also made many changes that make this hotel much more accessible to the clientele and more inviting for the players. He has put lots of dollars where his mouth is - he is trying to make a success of a previously troubled hotel. If he maintains the pace he is on, there is no doubt that it will become one of the top mid end properties serving the middle of the road customer. There is a great need on the strip for this type of operation.

The prospect of having Timesharing could be a real help - not only will it bring customers that are not familiar to this newly decorated property, but it will allow the hotel to use the unoccupied rooms for additional revenue. The towers will offer this hotel many more amenities and allow the marketing of an entire new group of potential customers. His association with David Siegel of Florida could be a strong marriage. Siegel is now a developer of other time shares. I like their chances and look forward to a very successful operation........